The decline in the stock market and the sharp rise in oil and gold prices are driven by the recent escalation of the conflict between Israel and Iran.
Stock Market Decline
US stock markets experienced significant losses on Friday after Israel conducted airstrikes inside Iran, triggering a missile response from Iran. The Dow Jones Industrial Average plunged 769.83 points, a 1.8% drop. The S&P 500 lost 1.1%, and the Nasdaq Composite was down 1.3%. The losses erased previous weekly gains and reversed a market recovery led by large-cap tech names.
Surge in Oil and Gold Prices
Market sentiment shifted dramatically when Israeli Defense Minister Israel Katz announced a state of emergency following the military confirmation of the strike inside Iran. Oil prices surged more than 7% for both Brent and WTI. WTI approached $74 a barrel before easing slightly. There was also an increase in gold prices, reaching a nearly two-month high amid heightened demand for safe-haven assets.
US Support for Israel and Further Conflicts
Iranian state TV announced that the country would not attend the sixth round of nuclear talks with the US scheduled for this weekend, following its missile launch. Despite NBC News' denial of US military participation, reports suggest that the US was involved in intercepting Iran's missiles. Israeli Prime Minister Benjamin Netanyahu warned of further actions against Iran, stating that 'more is on the way.'
The current escalation of the conflict between Israel and Iran raises global alarm and poses questions about future actions on the international stage, particularly regarding potential US involvement.
